The Wire Spring 2026 Archives - HFMC Wealth

Why poor record-keeping could see HNWIs gifts backfire… and what to do about it

Tue, 24 Feb 2026 15:08:07 +0000

Several recent Inheritance Tax (IHT) announcements may significantly impact high net worth individuals (HNWIs) over the next few years. The extension of the current IHT threshold freeze to at least 2031, as well as imminent changes to the IHT treatment of unused pension funds and pension death benefits, means that now could be a good time to revisit your estate planning.

One way to mitigate a potentially large IHT bill is to insure your liability. You might have read Darren Berry’s take on this issue last year, ‘How to manage complex life insurance and estate planning as a HNWI’, which includes some important reminders and first steps.

Another valuable tool at your disposal is lifetime gifting. This can help to tax-efficiently lower the value of your estate by distributing assets while you are alive, rather than passing them on when you die. But robust record-keeping will be key to ensuring you and your loved ones avoid unwanted tax surprises.

Keep reading to find out more about the HMRC allowance you might use and why keeping track of your gifts is so important.

As Inheritance Tax receipts rise, the need for mitigation strategies increases too

The Treasury’s IHT receipts have been rising in recent years, in part due to frozen IHT thresholds. The nil-rate band has been frozen at £325,000 since 2009, while the residence nil-rate band (only introduced in 2017) has been frozen at £175,000 since 2021.

Latest forecasts from the Office for Budget Responsibility (OBR) suggest that IHT could raise £14.5 billion for the government by 2031.

Historic and projected IHT receipts (2000-2031):

Source: OBR

While frozen thresholds drag more estates into the IHT net, changes to the IHT treatment of pensions on death could have significant ramifications too. It’s possible that your pensions previously played a key role in your estate and legacy plans, but rule changes from 6 April 2027 may necessitate an adjustment.

Under current rules, benefits payable from a pension on death after the age of 75 are generally subject to Income Tax, payable by the beneficiary. New rules mean that unused pensions will also become part of the pension holder’s estate. This combination of IHT and Income Tax could result in a sharp rise in effective tax rates.

For this reason, planning to mitigate the effects of these changes could be a worthwhile strategy.

Gifting can be a tax-efficient estate planning tool

Lifetime gifting (or giving while living) can be a tax-efficient way to lower the value of your estate. Plus, it has the added benefit that you’ll still be around to see the difference your inheritance makes to those who receive it.

You can make as many gifts as you like during your lifetime, but once you have used up your HMRC gifting allowances and exemptions, the gifts you make will likely be classed as potentially exempt transfers (PETs).

These are subject to IHT at 40% on death within three years of making the gift, with tax charged on a sliding scale known as taper relief on death between three and seven years. Taper relief only applies if your total gifts made in the seven years before you die exceed the £325,000 nil-rate band.

Gifts that fall within HMRC gifting exemptions and allowances are IHT-free from the moment you make them.

It’s important to keep your records up to date, and yet Money Marketing suggests that 45% of HNWIs have no written record of the gifts they’ve made. While 29% rely on “mental notes”, 17% have no record at all.

Keep track of your £3,000 annual exemption to avoid unpleasant surprises

Each year, you have a £3,000 gifting allowance, known as the annual exemption. This is individual to you and can be carried forward for up to one year. This means that you and your partner could gift £12,000 this year if neither of you made use of your exemption during the last tax year.

Once gifts exceed £3,000, these could be subject to IHT if you pass away within seven years, so you could be inadvertently leaving your intended beneficiary with a surprise tax bill.

Gifts classed as “normal expenditure out of income” must pass strict HMRC tests

Record-keeping is arguably even more important if you plan to take advantage of the normal expenditure out of income exemption. This allows you to make regular gifts to loved ones, as long as your gift passes strict HMRC rules.

The gift must:

Be made regularly and comprise part of your normal outgoings
Come from your usual income (for example, a salary or pension)
Not detrimentally impact your standard of living.

This exemption could be incredibly useful for paying into a child’s pension or a grandchild’s Junior ISA on their behalf, for example. But you’ll need to be able to prove to HMRC that each gift you make meets the above criteria.

Keep a simple record of the:

Gift and recipient
Value of the gift
Date you gave the gift.

This should be sufficient to ensure these regular gifts don’t fall foul of HMRC rules.

Get in touch

If you want help revising your estate and legacy planning in light of imminent rule changes, get in touch with HFMC Wealth today. Contact us online or call 020 7400 4700 today to help plan your loved ones’ financial future.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

Remember that taper relief only applies to gifts in excess of the nil-rate band. It follows that, if no tax is payable on the transfer because it does not exceed the nil-rate band (after cumulation), there can be no relief.

Taper relief does not reduce the value transferred; it reduces the tax payable as a consequence of that transfer.

The Financial Conduct Authority does not regulate estate planning or tax planning.

The post Why poor record-keeping could see HNWIs gifts backfire… and what to do about it appeared first on HFMC Wealth.

What is the Mansion Tax, and will it affect you?

Tue, 24 Feb 2026 15:06:01 +0000

The chancellor used her 2025 Autumn Budget to announce a “Mansion Tax” payable on properties valued at £2 million or more.

Officially known as the High Value Council Tax Surcharge, the widely predicted measure is expected to be levied on just 1% of properties in England when it comes into force from April 2028. But if your property is among those affected, you may need to find an additional £7,500 a year.

Keep reading for a closer look at how the charge will be calculated and whether your property will be included.

From April 2028, you could see between £2,500 and £7,500 added to your Council Tax bill

Applied on top of current Council Tax bills and payable by homeowners (not occupiers), the Mansion Tax will be based on property values for 2026, as decided by the Valuation Office, which is set to conduct a “targeted valuation exercise” between now and April 2028, with revaluations every five years.

Charges are expected to be levied in line with four proposed bands:

£2,500 for properties worth £2 million to £2.5 million
£3,500 for properties worth £2.5 million to £3.5 million
£5,000 for properties worth £3.5 million to £5 million
£7,500 for properties worth over £5 million.

Not only could your £5 million home be subject to an additional £7,500 annual charge, but the amounts are also not fixed. Instead, they will rise in line with the Consumer Prices Index (CPI) from 2029/30.

High-level policy is agreed, but a public consultation will be followed by an ironing out of the details

While most details of the legislation appear to be all but finalised, the government is due to hold a public consultation on certain aspects of the tax in the coming months.

Concerns are likely to be centred around London and the south-east, where the majority (around 82% according to the Telegraph) of the 140,000 affected homes are situated.

HNW pensioners – potentially asset-rich but cash-poor – are likely to be among the groups impacted by the new rules. For those relying on fixed pension income, the additional charge could prove hard to find. Some may even be forced to consider downsizing.

But some steps can be taken now to mitigate the impact of the measure.

3 simple ways to prepare for the introduction of the Mansion Tax

1. Determine whether the charge applies to your home

The Valuation Office is expected to begin its work next year, but valuations will be based on 2026 prices so you might seek your own valuation now in order to start preparing. Simple online valuation tools can give you a rough idea of your property’s worth, but for a more accurate picture, a professional valuation might be required.

Understanding the value of your property means you’ll be able to see where in the four bands your charge will likely fall and begin to plan accordingly. Remember, the charge ranges from £2,500 to £7,500, so an accurate valuation is key.

2. Factor the potential charge into your budget now

While a potential charge won’t be due until 2028, once you know what you will have to pay, it might make sense to factor it into your budget now.

Doing so will allow you to think about where the money will come from and its effect on your household finances, while there’s still plenty of time to amend your plans. If your property value falls close to the threshold between bands, you might consider preparing for the higher charge to allow for house price rises over the next 12 months.

3. Revisit your plans to mitigate the impact of the tax on your goals

While the additional charge – especially when paid over many years – will be significant, with careful planning, there’s no reason for it to impact your long-term financial goals.

We can help you to keep on track through annual reviews and minor changes, helping to maintain your lifestyle now, while continuing to build wealth toward your dream retirement.

Get in touch

The introduction of the Mansion Tax is still two years away, but if you think it will apply to you, now is the time to act. If you’re concerned about the new measure or its potential impact on your long-term plans, get in touch with HFMC Wealth today. Contact us online or call 020 7400 4700 today to help plan your loved ones’ financial future.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

The value of your investments (and any income from them) can go down as well as up, and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

The post What is the Mansion Tax, and will it affect you? appeared first on HFMC Wealth.

What a projected jump in six-figure salaries means for the 60% tax trap

Tue, 24 Feb 2026 15:03:53 +0000

A £100,000 salary was once a considerable sum, reserved for ultra-high earners. Inflation and wage growth over time have seen more UK workers earning six-figure sums, and now, according to FT Adviser, that number is set to surpass two million for the first time.

While good news on the surface, a salary that exceeds £100,000 could open you – or your HENRY (high earner, not rich yet) children – to the 60% tax trap.

Thankfully, professional financial advice and careful planning can help to mitigate this trap.

Keep reading to find out how.

The number of UK workers earning more than £100,000 is on the rise… with potentially significant ramifications for tax

FT Adviser figures confirm that around 6% of the UK’s 34 million workers are set to earn more than £100,000 in the 2026/27 tax year.

Just 1.2 million earned this amount as recently as 2021/22.

The rise, though, comes at a time when fiscal drag (resulting from frozen tax thresholds) is pushing more workers into the tax system for the first time, as well as forcing higher earners over the threshold into the higher- and additional-rate tax brackets.

A £100,000 salary that might once have brought financial freedom could now come with a huge tax bill and even the loss of some benefits, such as childcare support.

The so-called “60% tax trap” could see you heavily taxed on income between £100,000 and £125,140

Since 2021, the UK’s Personal Allowance – the amount you can earn before tax becomes payable – has been frozen at £12,570. It is set to remain at this level until at least 2031.

However, once your annual income exceeds £100,000, you trigger a tapering of the Personal Allowance, decreasing by £1 for every £2 of earnings above the £100,000 threshold.

Earnings between £50,270 and £125,140 are typically liable for the higher rate of Income Tax (40% as of 2025/26).

If your income is between £100,000 and £125,140, you pay 40% on your earnings, but your lost allowance is also taxed at this marginal rate. This creates an effective tax rate of 60%.

Say you earn £110,000. You are £10,000 above the threshold for the tapering of the Personal Allowance, and that £10,000 will be taxed as follows:

40% of £10,000 (£4,000).
40% of your lost allowance of £5,000 (£2,000).

The total tax paid on your £10,000 is £6,000 (or 60%).

Once your income reaches £125,140, the taper reduces your Personal Allowance to zero, and you are pushed into the additional-rate tax bracket of 45%.

Different Income Tax rates apply in Scotland, meaning that the effective rate could be even higher. The above figures apply to England, Wales, and Northern Ireland.

Higher earnings could see HENRYs miss out on valuable childcare support worth thousands

Alongside the 60% tax trap, those earning more than £100,000 who also have a young family could lose valuable childcare benefits.

In England, parents of children aged nine months to four years are generally entitled to 30 free hours of childcare a week, provided both parents are working and earn between the minimum wage for 16 hours a week and £100,000.

While both parents can earn £99,000 and still receive the free hours, if one partner earns just £100,001, the hours can no longer be claimed.

Instead, you would only be eligible for 15 free hours a week, specifically for children aged between three and four.

According to Investors’ Chronicle, if one parent on £99,000 a year received a £5,000 pay rise, the resulting tax rise and loss of childcare support would see the household around £13,000 worse off.

Separate childcare funding schemes exist in Wales, Scotland, and Northern Ireland, with different rules and eligibility criteria.

Professional financial advice and planning can help you to mitigate the tax impact of a £100,000-plus salary

One way to avoid the 60% tax trap might be through philanthropy. As a higher- or additional-rate taxpayer, donating to charity could increase your take-home pay, as you can claim the difference between the higher rate and basic rate on your donation. Reducing your adjusted net income could help you to keep more of your Personal Allowance or retain the full 30 hours of childcare support.

Donating via payroll giving allows you to donate before tax, decreasing your Income Tax bill and thereby increasing your take-home pay.

Salary sacrifice schemes can also reduce your net income by deducting pension contributions from your pre-tax salary, reducing the Income Tax and National Insurance (NI) you pay.

It’s worth noting here that NI-efficient salary sacrifice contributions will be effectively capped at £2,000 from 2029. Once the change comes into effect, the above charitable donation strategy might be even more appealing.

Claiming the higher rate of pension tax relief on your contributions also lowers your adjusted net income, although this depends on how your pension scheme is set up. Other employee benefits could also lower your net income, but not all will, so it’s worth seeking advice or speaking to your employer.

Whether you or a loved one is close to or currently caught in the 60% tax trap, financial advice can help to create a tax-efficient plan that allows you to live the lifestyle you want to live now, while saving for a dream future.

Get in touch

As UK wages rise and thresholds remain frozen, fiscal drag could see your and your loved ones’ tax bills increase. But financial advice can help.

If you want help navigating the 60% tax trap, get in touch with HFMC Wealth today. Contact us online or call 020 7400 4700 today to help plan your loved ones’ financial future.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

The post What a projected jump in six-figure salaries means for the 60% tax trap appeared first on HFMC Wealth.

How to instil a love of literature in your children and grandchildren this National Year of Reading

Tue, 24 Feb 2026 15:01:11 +0000

The National Literacy Trust reported last year on a continuing “reading crisis”. Their early 2025 study found that reading for pleasure among children and young people is at its lowest level in 20 years.

And yet reading can be incredibly helpful in many aspects of children’s development.

So how can you foster a lifelong love of reading in your children and grandchildren, and why is 2026 a great year to try?

Reading, empathy, and Theory of Mind

When we read, we are forced to put ourselves into others’ shoes: to see the world from a new perspective.

Research suggests that this improves empathy and Theory of Mind – our capacity to understand that others hold beliefs and desires that may differ from our own. Both are crucial to building flourishing human societies and can be improved through reading (according to various studies as reported by Science.org).

The process of reading with young children before bed each night can help them to process the events of the day, while providing important bonding time for parent and child.

Lexicographer and star of TV’s Countdown, Susie Dent, recently spoke to the Guardian, urging parents to read – and play word games – with young children. Dent hopes doing so will boost language development in the face of increasing screen time. This screen time is believed to be a key factor in the decline of children’s vocabulary development identified by a recent Oxford University Press report.

The National Year of Reading 2026 hopes to reverse a decline in reading for pleasure

The National Literacy Trust found that under a third (32%) of those aged 8 to 18 enjoyed reading in their free time. That marks a 36% decrease since the survey began in 2005.

Just 18% of those aged 8 to 18 read something daily in their free time, and the problem is worse among primary school children and boys aged 11 to 16.

One simple way to increase reading for enjoyment is to understand what is causing the decline. When children and young people were asked what drives their reading habits, the survey found that:

38% were motivated by material related to favourite films or TV series
37% looked to books that matched interests or hobbies
26% valued the freedom to choose their own books.

With this in mind, the government-backed National Year of Reading 2026 is leading with the Go All In Campaign, which aims to “reconnect reading with the things that already inspire us – from playlists and football matches to films, food, and family time”.

The initiative is set to hand out 72,000 new books to children in need of them, and introduce the first-ever Children’s Booker prize, aimed at readers aged 8 to 12. The current children’s laureate, Frank Cottrell-Boyce, will chair the prize, which will be awarded annually.

15 books to read with your children or grandchildren now

From an award-winning adaptation of a folk song to a tale of friendship, a father’s instruction manual for living on Earth to classics that have stood the test of time, there are plenty of incredible books sure to spark a young child’s imagination.

Here are a few to consider and their rough reading ages, to be taken as a guide only.

Under 6

1. We’re Going on a Bear Hunt by Michael Rosen

In which an adventurous family go in search of a bear, overcoming obstacles along the way.

2. Giraffes Can’t Dance by Giles Andreae

The tale of Gerald the giraffe, whose long legs and wobbly knees threaten to hamper his dreams of dancing.

3. Shark in the Park by Nick Sharratt

A new telescope provides the perfect round hole for children to peer through. But what will they discover?

4. Here We Are by Oliver Jeffers

Written as a manual for understanding life on Earth and our own place in the world, from Jeffers to his baby son.

5. Gruffalo’s Granny by Julia Donaldson

The highly anticipated next instalment in the popular Gruffalo series is due out in September 2026.

Age 7 to 12

6. Black Beauty by Anna Sewell

This classic is subtitled The Autobiography of a Horse.

7. War Horse by Michael Morpurgo

Also a live action film and stage show, this modern classic is a moving introduction to the second world war.

8. Stitch by Padraig Kenny

This gothic adventure is a Frankenstein-inspired lesson in grief and belonging.

9. Matilda by Roald Dahl

A love letter to the joy of reading and a spellbinding adventure, Matilda remains as beloved now as on its release almost 40 years ago.

10. The Lion, the Witch, and the Wardrobe by CS Lewis

The first book to be published in Lewis’ Chronicles of Narnia series, this Christian allegory is also a thrilling portal fantasy.

12 and over

11. Silverfin by Charlie Higson

The first of Higson’s series of books featuring a teenage James Bond, seen here during his first term at Eton College.

12. Impossible Creatures by Katherine Rundell

Named Waterstones’ Book of the Year across all categories in 2023, a follow-up (The Poisoned King) arrived in 2025.

13. Mortal Engines by Philip Reeve

Reeves incredible world-building helps to draw readers into a story of political intrigue and high adventure in a post-apocalyptic (town-eat-town) world of Municipal Darwinism.

14. The Hunger Games by Suzanne Collins

Expect mature themes and violence in another dystopian future where children are selected to fight to the death in arenas for the glory of their district (and the entertainment of the Capitol).

15. The Lord of the Rings by JRR Tolkien

This fantasy classic barely needs an introduction but could provide a thrilling, challenging read for older readers.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

The post How to instil a love of literature in your children and grandchildren this National Year of Reading appeared first on HFMC Wealth.

5 investment lessons for under-35s as two-thirds turn to financial influencers for “advice”

Tue, 24 Feb 2026 14:59:38 +0000

According to the US-based FINRA Foundation, nearly two-thirds of young American investors are taking financial advice from financial influencers.

These so-called “finfluencers” offer – often unregulated – financial advice to young people, predominantly on social media. Finfluencers can negatively impact young investors by encouraging them to pursue “get-rich-quick” schemes or make investment decisions without providing the necessary risk warnings.

And it’s not just a US problem.

It’s all but impossible to police the financial “advice” your loved ones receive online. However, you can teach them important money lessons, providing them with the tools they need to invest sensibly and spot the potentially harmful advice of unqualified finfluencers.

Continue reading to learn more about finfluencers and five important lessons to teach your loved ones about safe investing.

Social media finfluencers provide online financial “advice” that is often unregulated, high-risk, and not tailored to individuals’ needs

Finfluencers have gained popularity on social media in recent years, sharing advice on platforms like TikTok, Instagram, and YouTube. As such, their primary demographic is Gen Z (those born between 1997 and 2012), who are most likely to use these platforms and interact with their content.

In fact, according to research from the FCA, 85% of young investors acknowledge that social media platforms were highly influential in their investment decisions. A further 43% admitted to using these sites as their primary research tool.

As an unchecked source of financial advice, finfluencers can pose an inherent risk to your loved ones’ wealth.

This is because finfluencers are generally not regulated. FT Adviser reported back in September 2025 that three individuals were criminally charged with communicating an invitation to engage in investment activity, contrary to the Financial Services and Markets Act 2000.

Finfluencers have also been linked to scams. The FCA reports that more than 90,000 people lost a combined £75 million due to finfluencers encouraging trading in Contracts for Difference (CFDs).

In addition, the advice offered by finfluencers is often given to a broad audience and is therefore generalised and not specific to the individuals it reaches.

5 lessons to teach your children about investment literacy

Understanding risk

There is no such thing as risk-free investing. Whenever you invest in stocks or shares, you run the risk of losses or even losing your money entirely.

However, many finfluencers fail to inform their audience of these risks, largely because they are focused on driving engagement. This involves amassing followers rather than complying with FCA regulations.

The reality of investing is a constant balancing of risk and reward. The more risk you take, the higher your chance of significant returns, but of potential losses too. The less risk you take, the less likely you are to lose (or gain) significant sums. Teaching your loved ones this basic principle can encourage them to be more mindful when weighing advice online.

Research before you invest

Whenever you receive investment advice, it is up to you to decide whether it is reliable or not, and if it’s right for you.

You can teach your loved ones to think critically about the authenticity of an offer. Are the investment returns credible? Does the finfluencer identify the risks associated with their advice, or show FCA regulation badges or certificates? Is the investment suitable for their goals?

Past performance is no guarantee of future returns, but researching historic trends and taking steps to ascertain the risk of any investment opportunity is sensible before parting with your hard-earned wealth.

Beware of investment scams

While some finfluencers likely have good intentions, there are those who promote too-good-to-be-true investment opportunities only to scam young investors out of their money.

It’s good practice to approach get-rich-quick content with a healthy dose of scepticism. Keep an eye out for scam indicators, such as:

Investments that offer “guarantees” or high returns for low risk
High-pressure tactics, often involving time-limited or once-in-a-lifetime offers
Advice from social media accounts on which the user doesn’t show their face or uses an AI voice-over.

Your loved ones must conduct their own due diligence before making any investment decisions, but you can also educate them on the value of consulting a professional financial planner.

Investing is a long-term strategy, not a quick win

Contrary to the dream that some finfluencers might try to push, investing isn’t a shortcut to vast wealth.

Investing is a long-term strategy intended to be in place for decades rather than days.

It’s important to reaffirm this to loved ones. The fast-paced nature of the internet and the constant barrage of trends to chase and “next big things” can confuse novice investors into making emotional or reactionary decisions.

Instead, it is generally preferable to ignore the noise and stay the course. While it’s easy to become concerned by market volatility, history tells us that markets bounce back. Rather than panicking, your loved ones will likely be better served by ignoring the noise and holding onto their investments.

Diversify your investments

When you invest in one type of stock, your returns depend on that stock’s performance. This means that if it does well, so do you. If it performs poorly, the value of your investment will fall along with it.

Protect your loved ones’ investment strategy by advocating for a diversified portfolio composed of various asset classes market sectors and geographical regions.

Diversifying wealth spreads risk. If one market dips, another might rise, meaning an overall investment remains stable.

Get in touch

While some finfluencers might provide generalised tips that are broadly sensible, financial planning is not a one-size-fits-all situation.

If you want to help your loved ones make sensible decisions about their financial future, get in touch with HFMC Wealth today. Contact us online or call 020 7400 4700 today to help plan your loved ones’ financial future.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

The post 5 investment lessons for under-35s as two-thirds turn to financial influencers for “advice” appeared first on HFMC Wealth.

3 simple investing lessons from the FTSE 100’s record-breaking year

Tue, 24 Feb 2026 14:54:54 +0000

When the FTSE 100 reached 10,000 points for the first time on 2 January 2026, the milestone capped a strong 12 months for the index. Annual returns of 21.5% were more than double those delivered in 2024 (9.2%).

2025 marked the FTSE 100’s best year since 2009 – when markets were bouncing back from the global financial crisis – and the index’s seventh best year since 1985, when records began. The UK index also outperformed the S&P 500.

This strong performance came during a turbulent year that saw continued global conflict, increased political uncertainty, and no lack of short-term volatility.

So, what lessons can we learn from the FTSE 100’s record-breaking year about ignoring the noise and remaining focused, and the logic of investing during an all-time high?

Keep reading to find out.

White House foreign policy caused an April blip before a strong recovery

The imminent inauguration of President Trump meant that markets were braced for uncertainty from the outset in 2025.

Trump’s list of “day-one” promises included the cessation of hostilities in Ukraine, an “end” to inflation, and blanket tariffs on Canada and Mexico. The full extent of Trump’s protectionist “America First” agenda only became clear – and impacted markets significantly – in April, on so-called “Liberation Day”.

Investor reaction to the 90-plus tariffs announced on 2 April is clear from a look at the FTSE 100 for 2025. And yet, the UK index recovered.

Source: London Stock Exchange

While the FTSE 100 is composed of UK-based firms, the majority are large multinational companies that derive their returns from global markets. While US tariffs caused initial concern, this uncertainty (among other factors) led to a boost for some stocks, such as mining, many of which are held in the FTSE.

2025 was also a strong year for the finance and insurance sectors (aided by higher interest rates) and for defence and aerospace – a result of continuing global conflict.

Other factors that helped lift the FTSE to its record-breaking 10,000 points include investor movement away from the US tech sector, in part due to concern about an AI bubble, and into cheaper, stable, and more defensive UK-based stocks. The potential for strong and steady dividend income in an uncertain equities market also played a part.

3 simple investing lessons the FTSE 100 taught us in 2025

1. Stay calm and ignore the noise

2025 was undoubtedly a turbulent year geopolitically, and for markets too. When significant events with global knock-on effects are reported almost every day, it can be easy to panic and anxiously revisit your investments.

It’s easy, too, to consider altering investments in line with your own views on likely political outcomes or predicted market movements.

Of course, markets are governed in part by investor sentiment, so political headlines can cause short-term ripples. But economic fundamentals, such as corporate earnings, interest rates, and factors affecting underlying asset classes, play a significant role too.

Adapting your strategy and trying to judge markets based on the “noise” of geopolitics and rolling news headlines could damage your progress towards your goals.

More advisable is to stay calm and trust in the historic (although not guaranteed) upward trend of the market.

2. Think long-term and don’t chase trends

You will have heard us say time and again that it’s time in the market, not timing the market, that counts.

The briefest glance at the FTSE 100 for 2025 will confirm the detrimental impact of cashing out at the beginning of April and not being invested as the shock of Liberation Day diminished and markets recovered.

Your investments are long term, exactly to ride out periods of short-term volatility, so staying calm, avoiding emotional knee-jerk reactions, and focusing on your ultimate goals is key.

Remember, too, that reaching your investment objective isn’t a race. It’s a carefully risk-managed journey aligned to your time frames, so chasing trends that don’t fit your risk profile is also generally to be avoided.

3. It’s ok to invest when markets are high

It can seem counterintuitive to invest during a market high. When markets peak, it’s reasonable to assume that the only way is down. And yet, in a stock market that trends upwards, all-time highs may occur more often than you think.

Schroders reported back in July 2025 that during the last 98 years, markets have been at an all-time high for 30% of the time. That’s 354 of more than 1,100 month-ends since 1926.

What’s more, average 12-month returns following an all-time high have been better over the last 100 years than at times when the market wasn’t at a high.

Source: Schroders (data)

This Schroders and Morningstar data suggests that investors shouldn’t be concerned about investing immediately after an all-time high, although, of course, past performance is no guarantee of future performance.

Get in touch

Your long-term investments are individual to you: your goals, time frames, and attitude to risk. Global markets fluctuate daily, and periods of short-term volatility are not only to be expected but are effectively built into your plan via its long-term horizon.

While it can be all too easy to panic when markets tumble or geopolitical uncertainty is rife, we’re on hand to offer reassurance and keep you on track, so be sure to speak to us if you have any questions.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

The post 3 simple investing lessons from the FTSE 100’s record-breaking year appeared first on HFMC Wealth.

Welcome to the Spring Edition of The Wire

Tue, 24 Feb 2026 14:52:45 +0000

Spring is a time of rebirth and renewal, and in that spirit, it’s all change at The Wire too. As Director of Wealth Planning, I’m passionate about helping clients plan for the future and am delighted to be introducing The Wire for the first time with this packed spring edition, our first of 2026.

Last year was generally strong for global markets – and for the FTSE 100 in particular – despite geopolitical uncertainty and continuing conflict overseas, while the year ended with the highly anticipated Autumn Budget at home. And it’s here that we start this edition of The Wire.

The introduction of a “Mansion Tax” had been widely mooted in the run-up to Rachel Reeves’ late-November Budget. While speculation doesn’t always directly translate to policy, on this occasion, the chancellor did announce a High Value Council Tax Surcharge (or “Mansion Tax”), payable on properties valued at £2 million or more from April 2028.

With a top rate of £7,500 a year, it’s understandable that some of you will be worried. Read your guide to everything we know about the Mansion Tax so far and the steps you can take now to mitigate its impact if you think you will be affected.

Next up, I’ve already alluded to the FTSE 100’s strong 2025 performance, but it was actually on 2 January 2026 that the index broke the 10,000 barrier for the first time.

After a 2025 marred by geopolitical tension, ongoing wars, and unpredictability, the performance of the UK’s leading index provides some valuable lessons about ignoring the noise, staying focused, and why you needn’t be anxious about investing when markets are at an all-time high.

HMRC expect to see a jump in the number of UK taxpayers earning over £100,000 a year, with more than 2 million people expected to reach this threshold in 2026. But is £100,000 the impressive salary it once was? Take a closer look at how fiscal drag, potential knock-ons for childcare, and concerns about the 60% tax trap could affect you or your high-earning children in 2026. Plus, we’ll explore how professional financial advice could help.

Back in our spring 2025 edition of The Wire, we wrote about upcoming changes to the Inheritance Tax (IHT) treatment of unused pension funds and death benefits, and the impact of rising IHT bills. On that occasion, we wrote about the importance of placing life insurance policies in trust. But lifetime gifting could be a valuable strategy too.

Giving while living helps you lower the value of your estate for IHT purposes tax-efficiently. But poor record-keeping could see your gifts backfire. Find out why this is the case and how to ensure your record-keeping is robust enough to protect your wealth and loved ones.

Then, as two-thirds of young investors turn to financial influencers for “advice”, discover why these so-called “finfluencers” could be so damaging to your loved ones’ wealth. From the lack of risk warnings and regulation to the generalised nature of social media claims, read about the five simple investment lessons to teach your children or grandchildren now.

Finally, as the Department for Education has named 2026 the National Year of Reading, discover why and how to instil a love of literature in your children and grandchildren. Research suggests that reading increases empathy, improves social skills, and can even reduce stress, so we’ve included a rundown of 15 books perfect for helping you to give your children the gift of a lifelong love of reading.

I hope you enjoy this spring edition of The Wire.

Best regards,

Lisa

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